Empirical Answer
The empirical answer for the justification of an economic system; “the efficient allocation of the resources in society”. However, there is a caveat. It is the degree of equality. Therefore the definition of an economic system really should read, “the equable” allocation of the resources in society. Historically the genesis of the demise of any economic system is inequality. Heightened inequality is not economic efficiency.
Capitalism as an economic system is not exempt. It ages. Over time the benefits increasingly accrue to an ever shrinking select minority. Eventually what is left for everyone else is not viewed as remotely just. In the case of capitalism we must look at it on a global basis. We should treat variance among nations like that of States in the United States. The United States being the Texas of the world. Texas can be referenced as a microcosm of America's place in the world in terms of relative size, economics, politicies and culture. Globalization has created the condition of veiwing capitalism on an international basis and not nation-by-nation. The exchange of goods, services and money is the glue.
America has an “exacerbated” capitalism or one less disposed to serve social purposes. American capitalism is self serving. Profits is its singular motivation. American culture condones just about anything in obtaining those profits. Scandinavian countries seem to occupy the opposite pole from America. They tend to have serving a social purpose as the primary objective of their economic system.
In the most advance stage of an economic system life cycle the inequality blame shifts. Dissatisfaction goes from the wealthy beneficiaries and their political enablers to the system itself. Capitalism in the world is reaching this tipping point. The austerity movement is really disenfranchisement in a different guise. It is driving toward economic insurrection.
What can we expect once we have crossed the tipping point? A sharp economic swing to assertive socialism or even communism. It will be a bloody time. The rich will fight to the end to retain their wealth and control. They will use the resources of government as their bulwark. This will cause the people to focus on the overthrow of the government.
If it is obvious that inequality leads to an economic system demise, why is timely action not taken to mitigate the situation? In a word, “greed”.
The empirical answer for the justification of an economic system; “the efficient allocation of the resources in society”. However, there is a caveat. It is the degree of equality. Therefore the definition of an economic system really should read, “the equable” allocation of the resources in society. Historically the genesis of the demise of any economic system is inequality. Heightened inequality is not economic efficiency.
Capitalism as an economic system is not exempt. It ages. Over time the benefits increasingly accrue to an ever shrinking select minority. Eventually what is left for everyone else is not viewed as remotely just. In the case of capitalism we must look at it on a global basis. We should treat variance among nations like that of States in the United States. The United States being the Texas of the world. Texas can be referenced as a microcosm of America's place in the world in terms of relative size, economics, politicies and culture. Globalization has created the condition of veiwing capitalism on an international basis and not nation-by-nation. The exchange of goods, services and money is the glue.
America has an “exacerbated” capitalism or one less disposed to serve social purposes. American capitalism is self serving. Profits is its singular motivation. American culture condones just about anything in obtaining those profits. Scandinavian countries seem to occupy the opposite pole from America. They tend to have serving a social purpose as the primary objective of their economic system.
In the most advance stage of an economic system life cycle the inequality blame shifts. Dissatisfaction goes from the wealthy beneficiaries and their political enablers to the system itself. Capitalism in the world is reaching this tipping point. The austerity movement is really disenfranchisement in a different guise. It is driving toward economic insurrection.
What can we expect once we have crossed the tipping point? A sharp economic swing to assertive socialism or even communism. It will be a bloody time. The rich will fight to the end to retain their wealth and control. They will use the resources of government as their bulwark. This will cause the people to focus on the overthrow of the government.
If it is obvious that inequality leads to an economic system demise, why is timely action not taken to mitigate the situation? In a word, “greed”.
Labels: Empirical Answer
posted by CartoonsTE | 8:13 AM
0 Comments:
Post a Comment
<< Home